MicroStrategy Stock Reaches 25-Year High of $236.89 Amid Bitcoin Surge
Michael Saylor’s MicroStrategy has gained attention as its stock reaches a 25-year high, trading at $235.89 with a 7% increase on October 25th. This rise continues a 6-week rally ahead of the Q3 earnings report.
The stock's performance indicates consistent growth, outperforming most S&P 500 peers and even Microsoft since 1999. Analysts project a target price of $245 for the stock.
MicroStrategy's Bitcoin Focus
MicroStrategy is the largest corporate holder of Bitcoin, owning 252,222 BTC valued over $17 billion at the current price of $67,392.
MicroStrategy Stock Hits New Highs
MicroStrategy’s stock (MSTR) has soared over 7% to a 25-year high of $236, with a current market cap of $47 billion, overtaking Microsoft in all-time stock gains.
Since adopting Bitcoin as a treasury asset in 2020, MicroStrategy’s stock is up… pic.twitter.com/cyXS0KODCD
— The Wolf Of All Streets (@scottmelker) October 25, 2024
Originally focused on software development for data analysis, MicroStrategy shifted its business model to Bitcoin in August 2020, raising $4.25 billion through equity offerings to expand its Bitcoin holdings.
Costs of the Bitcoin Strategy
MicroStrategy aims to purchase Bitcoin regularly; however, this strategy has faced criticism. The company expanded its convertible note offerings to fund Bitcoin purchases, with most notes maturing by 2032. Critics highlight the risks associated with Bitcoin's volatility impacting the company's future. Despite criticisms, Saylor remains committed and has increased Bitcoin investments.
Hey @SatyaNadella, if you want to make the next trillion dollars for $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj
— Michael Saylor
(@saylor) October 25, 2024
Future Outlook
Market analysts express bullish sentiment toward MicroStrategy, with Mark Palmer noting a 17.8% yield since the Bitcoin strategy commenced. The stock has risen 1,600% in four years, indicating potential for further gains. Saylor’s unwavering commitment to Bitcoin is evident in recent communications.
Featured image from Dall.E, chart from TradingView